The appellant mortgagee held two mortgages on golf course properties owned by the respondent.
After the mortgages matured and went into default, the appellant appointed a receiver and eventually took possession of the properties, later selling them at auction.
The trial judge limited the appellant's recovery to the mortgage debt as of October 31, 1996, finding that the appellant had a duty to mitigate its losses and should have sold the properties earlier.
The Court of Appeal allowed the appeal, holding that the appellant was not in possession until August 1996 and that the principle of mitigation does not apply to an action for a fixed debt.
The Court affirmed that a mortgagee may exercise its power of sale whenever it chooses, provided it acts in good faith and takes reasonable precautions to obtain true market value.
